Partial delivery

Partial delivery is a type of delivery when an order is divided into two or more smaller orders and a delivery dates of each of them might be different.

The partial delivery notifications

From Europen law perspective, Bar C. and Clive E. are explaining a requirement of the notification: The buyer does not have to notify the seller that not all the goods have been delivered, if the buyer has reason to believe that the remaining goods will be delivered. Later on in the same document, they are adivising the following about requirement of the notification of a late or a partial delivery:

1. if the seller is not notifying the buyer about late delivery within an agreed or reasonable time, the buyer cannot rely on the contracted good and is not obligated to pay for not received goods,
2. if a part of goods were not received (for example due to some descrutions which took place in the way), the buyer should be notified if the missed part of the delivery is going to be delivered or not, and there might be still reason to rely on the delivery; however a unit price of a prodcuct might be part of negotiations here as it might impact sales,
3. if in the delivery some units were missed but an invoice includes the whole contracted quantity, the buyer might assume that there will be no late partial delivery, consequently the buyer is not obligated to pay for that part on the invoice and might negotiate a unit purchase price of received part.

Shipping cost for the partial delivery

Stecke K. E. and Zhao X. are presenting detailed models of optimasation of a total shipping cost. They are dividing calculations of shipping costs functions (taking a shipping time into consideration) to linear and non-linear for the partial deliveries as well and presents beneficial outcome to total costs. As the partial delivery gives possibility to split an order into smaller orders, the production of goods might be optimased by minimasing for example cost of stocking.

Examples of Partial delivery

• In retail, partial delivery can refer to when a customer orders multiple items, but only some of them are available at the time of ordering. The store will then ship the available items and wait for the remaining items to arrive before shipping them.
• In the construction industry, partial delivery can refer to when the contractor orders multiple materials from different suppliers. The contractor might receive some of the materials at an earlier date, while the remaining materials might arrive later.
• In the automobile industry, partial delivery can refer to when a customer orders a car with multiple features and options, but some of the features or options might not be available at the time of ordering. The manufacturer will then ship the available features and wait for the remaining features to arrive before shipping them.

Advantages of Partial delivery

Partial delivery can be a beneficial option in many scenarios. The advantages of partial delivery include:

• Reduced cost of delivery, as orders can be broken down into smaller parts and delivered separately on different dates. This can result in a lower total shipping cost.
• Reduced risk of lost or damaged goods, as the order can be split into multiple shipments and sent over different routes. This eliminates the risk of a single shipment becoming lost or damaged.
• Improved customer satisfaction, as customers can receive the items they need sooner, as the order can be split into multiple shipments. This can also help to increase customer loyalty.
• Improved inventory control, as orders can be split and delivered in smaller quantities. This allows for a more efficient inventory management system, as products can be managed more effectively.

Limitations of Partial delivery

Partial delivery can have several limitations, such as:

• Higher costs - partial deliveries will require more time and resources to coordinate and execute, resulting in higher costs compared to a single delivery.
• More complex logistics - partial deliveries will require more complex logistics and coordination between multiple parties in order to ensure that all components of the order arrive on time.
• Increased risk of damages - with multiple deliveries, there is an increased risk that some components of the order may be damaged during transit.
• Longer delivery times - with multiple deliveries, there is an increased risk that some components of the order may be delayed during transit, resulting in longer delivery times.
• Increased customer dissatisfaction - customers may be disappointed with the partial delivery of their order as they may have expected to receive all components of their order at once.

Other approaches related to Partial delivery

A partial delivery is a type of delivery when an order is divided into two or more smaller orders with different delivery dates. Other approaches related to partial delivery include:

• Split-shipping: This approach involves splitting the order into different shipments based on the availability of the products. This allows for the products to be delivered as soon as they are available, rather than waiting for the full order to be ready for delivery.
• Drop-shipping: This involves sending the products directly from the supplier or manufacturer to the customer, without passing through the retailer's premises. This can help to reduce costs and speed up delivery times.
• Batch-ordering: This approach involves ordering products in batches, allowing for shorter delivery times and greater accuracy.

In summary, partial delivery is a useful approach to reduce delivery times and costs, allowing customers to receive their orders quicker and more efficiently. Other approaches such as split-shipping, drop-shipping, and batch-ordering can also help to improve delivery times and accuracy.

Footnotes

Partial delivery — recommended articles

Inventory in transit — Direct delivery — Wholesale price — Cycle stock — Optimization of transport — Two-tier inventory control — Distribution logistics subsystem — Economic batch size — FOB destination

References

• Bar C., Clive E. (2010), Principles, definitions and model rules of European Private Law in Draft Common Frame of Reference (DCFR), Oxford University Press, UK
• Sharma K., Mutsaddi A. (2010), Configuring SAP ERP Sales and Distribution, John Wiley and Sons, Canada
• Stecke K. E., Zhao X. (2004) Production and Transportation Integration for a Make-to-Order Manufacturing Company with a Commit-to-Delivery Business Mode in Manufacturing & Service Operations Management, The University of Texas at Dallas, USA
• Weiya Z., Zhi-Long C., Ming C. (2010), Integrated production and distribution scheduling with committed delivery dates in Operations Research Letters 38, Shanghai University, China

Author: Bartłomiej Zegarliński